NPV and IRR: Unequal Annual Net Cash Inflows

Assume that Goodrich Petroleum Corporation is evaluating a capital expenditure proposal that has the following predicted cash flows:

a$.$ Using a discount rate of $10$ percent, determine the net present value of the investment proposal.

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b$.$ Determine the proposal's internal rate of return. $($Refer to Appendix $24$B if you use the table approach.$)$ Hint: You will need to use a trial$-$and$-$error approach.

Round to the nearest percent. $($Example: $0\mathrm{.}15268=15\%)$

$\%$Assume that Goodrich Petroleum Corporation is evaluating a capital expenditure proposal that has the following predicted cash flows:

Initial Investment $$(42,550)$

Operation

Year $114,000$

Year $224,000$

Year $319,000$

Salvage $0$

a$.$ Using a discount rate of $10$ percent, determine the net present value of the investment proposal.

$Answer

b$.$ Determine the proposal's internal rate of return. $($Refer to Appendix $24$B if you use the table approach.$)$ Hint: You will need to use a trial$-$and$-$error approach.

Round to the nearest percent. $($Example: $0\mathrm{.}15268=15\%)$

Answer

$\%$